Contingent employees can pick up the slack when business get busy, but structure the relationship carefully or their liabilities may linger long after they’re gone.

It’s easy to see why. The jobs of vacationing employees have to be covered. Seasonal businesses are going full blast. And throughout the year, there are sudden workload increases that require extra hands on the oars. Temporary or seasonal workers, along with independent contractors, are a seemingly ideal solution.

But are there any risks in employing temporary employees?

We discussed that question in the recent BLR audio conference: Seasonal and Temporary Workers: Navigate the HR, Wage/Hour and Practical Implications—and Risks for Your Workplace. The speakers were Laura E. Innes, an employment law attorney with Simpson, Garrity & Innes, and Drew Langevin, a management consultant. Both are based in San Francisco.

The conference began with a listing of sources for what are generically called “contingent workers.” Most, said the speakers, come from temporary agencies or professional employer organizations (“PEOs”). These groups recruit and compensate the workers and ensure their employment complies with applicable law. A third source is employee leasing agencies, which do the same except for the recruiting, which the client company does. The speakers felt that temp agencies were best used for short-term projects, the others for longer duration or recurring activities.

Your responsibilities to temporary employees

Your company has certain responsibilities to temporary workers, even though you’re not directly paying them. “When you bring on someone’s employees, they are also your employees,” said Innes. “This is something employers often forget.”

She explained that if workers are directed and controlled by you, you’ve formed a joint employer relationship with the sourcing agency. You and the agency are both responsible for ensuring that the temps are covered by workers’ comp, meet all wage/hour standards and have an I-9, W-4, and Social Security number on file. You also need to be sure that the agency has not improperly classified employees as exempt under FLSA rules if they shouldn’t be. This calls for dealing with reputable vendors and monitoring them diligently.

You are not required to offer contingent workers the same benefits as employees, the speakers noted, but you need to be careful that they don’t become eligible for benefits without your intending it. “Look at how your plans define eligibility,” said Innes. “If it just says ‘employee,’ you leave yourself wide open. Maybe you should have it read ‘employees on the payroll to whom we issue a W-2.’”

Let temporary workers know what policies apply to them

Both speakers emphasized the need for employers to make contingent workers aware of dress codes, safety and security standards, rules on access to data and other policies that apply to them, perhaps through a contingent worker handbook. Langevin noted that such a document would help your legal defense if you are sued over trouble a temp worker caused. “They couldn’t say ‘I wasn’t told about that,’” he said.

The speakers raised special cautions about independent contractors.

“Be certain contractors have the proper insurance coverage such as errors and omissions and general liability,” warned Innes. She added that employers should also look into who owns the rights to any creative work a contractor produces. Generally those rights are transferred to the employer under a “work-for-hire” agreement, but such an agreement can have unintended consequences. “In California,” Innes said, “anyone doing work for hire is automatically considered an employee.”

The conference concluded with advice on bringing in student interns, a common summer practice. “If the intern simply ‘shadows’ your employees, learning what they do,” said Innes, “none of the employment laws apply, but if they do anything of value … even answer a phone … then all the laws apply.”

Connect with Us

Free Resources

Due to COVID-19, the need for digitizing hiring to enable remote work is even greater. Ensuring that new hires are successfully settling in to their new roles is paramount in this unprecedented time. Download our free whitepaper for a look at the key phases of the onboarding journey and how various DocuSign products can improve each […]

One important aspect of improving the workplace environment that is often overlooked is office design. Changes to office and workstation design can not only make for a more pleasant and inviting workplace but also guard against complaints of employee discomfort and even costly work-related injuries.

The Recruiting Daily Advisor research team conducted a survey throughout February 2019 to take a snapshot of the real-world recruiting landscape. In our fifth annual recruiting survey, which features data from over 530 respondents, we sought to uncover recruiting trends among employers nationwide.

Knowing when to terminate an employee is just as important as knowing how to terminate an employee – and you can with this Terminations Procedures checklist.

WHY ATTEND A FORUM EVENT

Forum Events are 2-day complimentary networking events geared towards senior-level professionals. This is a great opportunity to network with peers, source solutions, and attend workshops. Check out this video to hear what previous attendees had to say.

HR Solution Showcase

COVID-19 Map and Resources for HR Professionals

The coronavirus (COVID-19) outbreak is top of mind for HR professionals and employers nationwide. Keep up with the current number of cases in your state with our interactive map, updated daily, and read on to learn how COVID-19 is impacting workplaces across the nation and what you can do to keep your workers healthy and safe.
Continue reading.

Coronavirus News and Headlines

The latest news and headlines to keep you up to date on the COVID-19 pandemic.
See resources.